Portfolio Strategy Pt. #5
What I'm Buying & Why
Investors,
Welcome to the latest edition of “Portfolio Strategy — What I’m Buying & Why”! These bi-weekly research reports analyze the qualitative and quantitative investment thesis of the 15 stocks & ETF’s I’m buying in portfolios that I help to manage. Since I started publishing this series in September, I’ve had people reach out to me for more details on this research, so I wanted to take a brief moment to explain who this is for.
These reports are not designed for:
Investors within 10 years of retirement.
Investors with an extremely low risk tolerance.
Investors looking for passive investment solutions (just stick to the S&P 500).
Short-term traders or speculators/gamblers.
These reports are designed for:
Investors who have long-term conviction in the U.S. stock market & economy.
Investors who are able to stomach short-term volatility for the sake of long-term potential returns.
Investors who have cash & income, looking to increase their ownership of assets.
Millennial investors, primarily invested in Bitcoin & crypto, who want to take advantage of the bear market to diversify into equities.
I’m really excited to share & analyze the two stocks that I’m covering in this report, as they’ve been beaten down more than the others in this 15-position portfolio. While I still see more downside ahead for these individual names (and the broader market), long-term investors should be grateful for the opportunity to buy these companies at much more attractive valuations. Considering that these two stocks are very sensitive to interest rates, I have been very patient to dollar-cost average into these positions and my current exposure to them is negligible relative to the rest of the portfolio. Despite falling much more than the broader market in 2022, both of these stocks have drastically outperformed the S&P 500 over the past 5, 10 and 20 years. Based on the micro & macro tailwinds that are impacting these companies & their industries, I suspect that they will continue to outperform the broader market over the long run & provide diversified exposure within this portfolio.
Without further delay, let’s explore the qualitative & quantitative investment thesis of each company: